the Commonwealth of Australia an

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1 PROJECT AGREEMENT FOR THE MANAGEMENT OF THE FORMER RUM JUNGLE MNE STE (STAGE 2) Council of AUSti'alien Governments An agreement between the Commonwealth of Australia an the Northern Territory. The outputs of this Project Agreement will be the delivery of the Rum Jungle Mine Site Rehabilitation P, oject (Stage 2) at the former Rum Jungle Mine site, Ruin Jungle Creek South, Mt Bunton and Mt Fitch sites. Page L

2 ntergovernmental Agreement on Federal Financial Relations Project Agreement for the Management of the Former Ruin Jungle Mine Site (Stage 2) NTERGOVER MENTAL AGREEMENT ON FEDERAL FT ANC TAL RELATONS PRELMNARES a.. This ProjectAgreement (the Agreement)is created subjectto the provisions of the ntergovernmental Agreement on Federal Financial Relations and should be read in conjunction with that Agreement and its Schedules, which provide information in relation to performance reporting and payment arrangements under the ntergovernmental Agreement on Federal Financial Relations. This Agreement will support delivery of the Ruin Jungle Mine Site Rehabilitation Project (Stage z) at the former Ruin Jungle site, Rum Jungle Creek South, Mt Burron and Mt Fitch sites. Any rehabilitation of the former Ruin Jungle Mine site funded by the Commonwealth of Australia (the Commonwealth)is considered to be capital works and is therefore subject to the Two Stage Capital Works Approval and Gateway Review Processes, both of which are undertaken by the Department of Finance and Deregulation. The Two Stage Capital Works Approval Process provides a methodology to develop scope and costs associated with capital works projects, reduce risk and increase cost certainty. The Gateway Review Process provides independent assurance that a project will be delivered in accordance with its stated objectives. This Agreement constitutes the entire agreement forthis project. PART L FORMALLTLES Parties to this Agreement s. This Agreement is between the Commonwealth and the NorthernTerritory. Term of the Agreement 6. This Agreement will commence assoon asthe Commonwealth and the Northern Territory sign the Agreement and will expire on 30 June 20,.6 or on completion of the project, including acceptance offin al performance reporting and processing offin al payments against milestones, unless terminated earlier or extended as agreed in writing by the Parties. Page 2

3 Project Agreement forthe Management of the Former Rum Jungle Mine Site (Stage 2) PART 2 PROJECT OUTPUTS Outputs 7- The outputs of this Agreement will be delivery of the Rum Jungle Mine Site Rehabilitation Project (Stage 2) through the actions and activities as set out in the Project Plan at Schedule A. Stage z consists of: (a) sitemaintenanceactivitiesj (b) environmental monitoring activities; (c) technical investigationsj (d) rehabilitation design works, including post-rehabilitation activities, that meet relevant legislative, environmental and cultural requirementsj (e) construction-ready specifications, drawings and costings for the above rehabilitation design works that are, at a minimum, able to assist the Commonwealth with progressing approval forthe Two Stage Capital Works Program; and 8 (f) support for capacity building of traditional Aboriginal owners. Outputs detailed in clauses 7(a) to 7(e) inclusive will be delivered in accordance with the Project Plan. The Project Plan is a flexible document that may be varied by the Northern Territory over time, to accommodate changes in circumstances. However, variations to the Project Plan that directly affect milestones or their achievement, or associated payments (Table a. ), are subject to written agreement between the Ministers. PART 3 - ROLES AND RESPONSTBTLTTES OF EACH PARTY Role of the Commonwealth 9. The Commonwealth will be responsible for: (a) monitoring and assessing achievement against milestones in the delivery of the Rum Jungle Mine Site Rehabilitation Project (Stage 2) under this Agreement to ensure that outputs are delivered within the agreed timeframej (b) providing a consequent financial contribution to the Northern Territory to support the implementation of this Agreement (c) providing guidance on the Two Stage Capital Works Program and Gateway Review Process requirements and assisting the Northern Territory to deliver the rehabilitation specifications and documentation in a manner that allows progression of these approval processes; and (d) supporting capacity-building opportunities for traditional Aboriginal owners as set out in clause 7(f). Page 3

4 ntergovernmental Agreement on Federal Financial Relations Role of the Northern Territory a. 0. The Northern Territory will be responsible for: (a) providing an in-kind contribution to supportthe implementation of this Agreement (b) delivery of the project in accordance with the Project Plan; (c) all aspects of delivering on the project outputs set out in clauses 7(a) to 7(e), inclusive, of this Agreement (d) chairing stakeholder engagement meetings and providing secretariatsupportj and (e) reporting on the delivery of outputs as set out in Part 4 - Project Milestones, Reporting and Payments Shared roles Parties share responsibility for engaging affected stakeholders to contribute to and guide the management of the former Ruin Jungle Mine site The Parties share responsibility for agreeing amendments to governance arrangements for the Rum Jungle Working Group, as required. The Parties will meet the requirements of Schedule E, Clause 26 of the ntergovernmental Agreement on Federal Financial Relations, by ensuring that prior agreement is reached on the nature and content of any events, announcements, promotional material or publicity relating to activities under this Agreement, and that the roles of both Parties will be acknowledged and recognised appropriate y. Role of the Rum Jungle Working Group 3.4. The representatives and functions of the Ruin Jungle Working Group are set out in Schedule B to this Agreement. PART 4 PROJECT MLESTONES, REPORTNG AND PAYMENTS 1.5. The following table summarises the milestones forthe project, their relationship to the outputs, expected completion dates, relevant reporting dates and expected payments to be made, once a report certifying that milestones have been met is received and accepted. Page 4

5 Table ^: Milestones, reporting and paymentsummary Project Agreement forthe Management of the Former Ruin Jungle Mine Site (Stage 2) Output Milestones Relevant Report due Payment Technical investigations Provision of a reportdemonstrating achievement a. 31,1120t3 of scheduled progress againstthe Project Plan Provision of a report demonstrating achievement LSos/2014 of scheduled progress against the Project Plan $,., 427,500 $a.,427,500 Rehabilitation design works Provision of a reportdemonstrating achievement,. ZLL/201.4 of scheduled progress againstthe Project Plan $1,955,500 Construction ready specifications Environmental monito ing Maintenance activities Provision of a reportdemonstrating achievement LSos120L5 of scheduled progress againstthe Project Plan Provision of reportdemonstratingachievement 221,2120,.5 of scheduled progress againstthe Project Plan Provision of draft rehabilitation design works and draft construction-ready specifications, drawings and costings Provision of a report demonstrating achievement 35/06/20,.6 of scheduled progress againstthe Project Plan Provision offin al rehabilitation design works and final construction-ready specifications, drawings and costings $a.,955,500 $2,,-47,500 $2,,-47,500 Reporting arrangements L6. The Northern Territory will provide performance reports in accordance with Table. during the operation of the Agreement. Each performance report is to contain the fol owing information (a) a description of actual performance of the Northern Territory in the period to date against the project milestones; (b) details of any matter(s) that have arisen which could adversely impact on the delivery of the output, and how the Northern Territory proposes to resolve thisthese matter(s) and (c) promotional activities undertaken in relation to, and media coverage of, the project during the reporting period and any promotional opportunities expected to arise during the next reporting period. Page 5

6 ritergovemmentalagreement on Federal Financial Relations The Northern Territory will also prepare a final Project Report within 90 days of the completion of the project agreed under the Project Agreement. The Project Report will be a stand-alone document that can be used for public information dissemination purposes. The final Project Report will: (a) describe the conduct, benefits and outcomes of the Projectj (b) evaluate the Project from the responsible Party's perspective, including assessing the extent to which the project milestones have been achieved and why any aspect was not achieved and include a discussion of any other matters relating to the project, limited to the minimum necessary for the effective assessment of performance and agreed between the Commonwealth and the Northern Territory, at least 60 days before it is due. PART 5 - FNANCAL ARRANGEMENTS 1.8. The Commonwealth will provide a total financial contribution to the Northern Territory of $,. a..56,.in in respect of this Agreement. All payments are GST exclusive. On commencement of this Agreement, an initial payment of $500,000 will be made to the Northern Territory to assist with the costs of implementing the Ruin Jungle Mine Site Rehabilitation Project (Stage z). The Commonwealth's funding contribution will not be reduced where the Northern Territory secures funding from other activity partners through innovative and collaborative partnerships. The Commonwealth's and the Northern Territory's estimated financial contribution to the operation of this Agreement, including through National Partnership payments to the States paid in accordance with Schedule D-Payment Arrangements of the ntergovernmental Agreement on Federal Financial Relations, are shown in Table 2. Table z: Estimated financial contributions ($ million) Estimated total budget (L) Estimated National Partnership payments (2) Commonwealth own purpose expense (3) Total Commonwealth contribution (4) = (2) + (3) Balance of non-commonwealth contributions (5) ' (^) ~ (4) 20.3., as 20.5',. 6 Total 3,755,000 A.,2,.,., 000 4,453,000 a. 2,4,.9,000 3,355,000 3,93.1,000 4,295, ,56J, , ,000,58, ,000 3,755,000 4,2L,., 000 4,453, ,4L9, Having regard to the agreed estimated costs of projects specified in a Project Agreement, the Northern Territory will not be required to pay a refund to the Commonwealth if the actual cost of the project is less than the agreed estimated cost of the project. Similarly, the Northern Territory bears all risk should the costs of a project exceed the agreed estimated costs. The Page 6

7 Project Agreement forthe Management of the Former Rum Jungle Mine Site (Stage 2) Parties acknowledge that this arrangement provides the maximum incentive for the Northern Territory to deliver projects cost effective y and efficiently. PART 6 GOVERNANCE ARRANGEMENTS Enforceability of the Agreement 23- The Parties do not intend any of the provisions of this Agreement to be legally enforceable. However, that does not lessen the Parties' commitment to this Agreement. Variation of the Agreement 24. The Agreement including its schedules may be amended at any time by agreement in writing by the Parties 25. Either Party to the Agreement may terminate their participation in the Agreement at any time by notifying the other Party in writing. Delegations 26. The Commonwealth Minister may delegate the assessment of performance against milestones and the authorisation of related project payments to senior Commonwealth officials, having regard to the financial and policy risks associated with those payments. Dispute resolution 27. Either Party may give notice to the other Party of a dispute under this Agreement. 28. Officials of both Parties will attempt to resolve any dispute in the first instance. 29. f a dispute cannot be resolved by officials, it may be escalated to the relevant Ministers. 30. f a dispute cannot be resolved by the relevant Ministers, it may be referred by a Party to the Prime Minister and the Chief Minister for consideration. nterpretation 33-- Forthe purpose of this Agreement, the former Rum Jungle Mine site means the area of Northern Territory Crown land identified as Section 2968, Hundred of Goyder. Page 7

8 ntergovernmental Agreement on Federal Financial Relations The Parties have confirmed their commitment to this agreement as follows: Signed 101'117zd on behalfqftlte Commonwealth of Austintin by The Honourable GaryGray MP Minister for Resources and Energy August 20a. 3 Signed 101.1znd on behalfqftlie N07'titer'11 Tel'titoij!/ by The Honourable Willem RudolfWestravan Holthe MLA Minister for Mines and Energy August 20.3 Page 8

9 Project Agreement forthe Management of the Former Rum Jungle Mine Site (Stage 2) Schedule A Project Plan Activities Rehabilitation design works and engineering design, including detailed drawings and specifications Update aerial photography and Digital Terrain Model Update Geographical nformation System Coversystems Assessment of existing coversystem at Ruin Jungle Creek South Contaminated soils clean-up Contaminated soilassessmentlscoping study at Mount Burron and Mount Fitch sites Dewateringvoid methodology Passive/reactive barriersjwetlands and seepage interception systems Landform design and materials movement Design of any reinediation works at Ruin Jungle Creek South Upgraded diversion channeland water hydraulics modelling Geochemistry investigations (including water treatment evaluation) Final design and construction surveys AAPA certificates & environmental approvals Management plans Technic investigatio s Development of locally derived water quality guidelines Flora and fauna surveys Groundwaterload balance calculations Hydrogeological assessment in old tailings area Delineation of groundwater contamination in the copper extraction pad area Environmental monitoring (surface water monitoring, allsites) Mai tenance activities Management and mainte ancewo ks; revegetationt iais of BorrowArea s, site aecess upgrade) Sta eholde engagement(liaiso Committee; urnjungle Working Group; Ruin ungle viso ommittee; DownsL earn traditional Aborigi alowner ) Notes: Activities will be undertaken in the Year or years indicated ^.^^ ^,..^ Page 9

10 ntergovernmental Agreement on Federal Financial Relations Schedule B Ruin Jungle Working Group -governance arrangements Bt. The Parties have agreed to the continued operation of the Rum Jungle Working Group to assist with the technical delivery of this project. 82. The Rum Jungle Working Group consists of representatives from: (a) Northern Territory. the Department of Mines and Energy (DME). (b) Commonwealth. the Department of Resources, Energy andtourismjand 11. the Supervising Scientist Division of the Commonwealth Department of Sustainability, Environment, Water, Population and Communities. (c) Other Stakeholders. Northern Land Council. B3. Representation on the Rum Jungle Working Group may be amended at anytime. 84. Following prior consultation and agreement, Parties may invite an agency to attend a Ruin Jungle Working Group meeting as an observer. BS. The role of the Ruin jungle Working Group is to assist the DME in delivering this project through the following functions: (a) identifying issues associated with the former Ruin Jungle Mine sitej (b) determining whatactionsshould be takento addressthose issuesj (c) reviewing the terms of reference for any environmental monitoring programs orscope of works for any consultanciescontracts to be carried out under this Agreement (d) monitoring progress of programs and activities being carried out under this Agreement and (e) assessing the reports and recommendations provided pursuant to programs and activities being carried out under this Agreement B6. Unless otherwise agreed, the Ruin Jungle Working Group will: (a) meet quarterly or as required; (b) determine its own procedures forthe conductofmeetingsjand (c) be chaired by the DMErepresentative. B7. A member of the Ruin Jungle Working Group can appoint a person to act in his or her place at any meeting of the Rum Jungle Working Group. Page to